Catastrophe Cover Why you should choose CHU by hjkuiw354


									                           Catastrophe Cover
                           Why you should choose CHU
                           In the event of a catastrophe, if you are insured with CHU then
                           you will receive some real advantages including an additional 25%
                           of special benefits with our policies. It is important to consider
                           Catastrophe Cover insurance because Australia now experiences
                           more than double the number of major natural disasters than
                           reported 30 years ago.

Catastrophes can happen through events such as earthquake, bush fire, hailstorms, cyclones etc and
records show that a large number of catastrophes have occurred in Australia in the past thirty years.
And while some areas are prone to particular types of natural disasters, the risk of earthquake is not
isolated. The Australian Earthquake code states “no part of Australia is free from the possibility of
earthquake occurrence.”

Damage from these catastrophes is estimated in the billions of dollars and history shows that
replacement costs dramatically increase following such catastrophes. Over the years CHU has stressed
the importance of protecting owners by keeping building valuations up to date and annually
adjusting insurance to reflect these increases. However, even a current valuation may fall short in the
event of a major disaster.

All State legislation relating to Strata Insurance requires the Bodies Corporate to insure the building
for full replacement value. By not taking the risk of cost escalation into account when establishing the
sum insured, the Bodies Corporate leaves itself exposed and in possible breach of the requirements of
the relevant State legislation.

Natural disasters in Australia have clearly illustrated how the escalation of costs can lead to a shortfall
in cover. Building costs after the Newcastle earthquake increased by 35% and after Cyclone Tracy
costs inflated by 75%. It has also been reported that the Canberra bush fires and, more recently, the
Victorian fires have left many individuals out of pocket through significant inadequate insurance.

No State is immune. For example, as recent as March this year much of metropolitan Melbourne and
regional Victoria felt significant tremors from earthquakes, both measuring 4.6 on the Richter scale,
originating in Korumburra (around 75kms south-east of Melbourne).

In fact, in the last six years Victoria has had nine declared 'catastrophe' events compared with three
in the previous 36 years since the Insurance Council set up the register. This includes two 'one-in-one
hundred year' storms within as many years causing widespread destruction. Queensland just recently
has also experienced severe storms causing major damage in certain areas across the State.

Protection from such disasters is available with CHU’s Building Catastrophe Insurance.

                                                                  CHU Underwriting Agencies Pty Ltd (AFS License No: 243261) is an
                                                                  underwriting agency acting on behalf of the insurers: QBE Insurance
                                                                  (Australia) Limited ABN 78 003 191 035 (AFS license No: 239545).
The CHU difference means you will enjoy an additional 25% of special
benefits when you insure with CHU.
CHU provides Catastrophe cover based on your selected sum insured and a good starting point for
calculating the amount of Catastrophe cover required is to add up to 30% of the replacement value
of your building.

For example:

Building Sum Insured (SI)                     $ 2,000,000
30% Catastrophe cover amount                  $ 600,000

Further benefits under a CHU policy:
●   temporary accommodation                                    $ 90,000
●   escalation costs                                           $ 30,000
●   removal, storage and evacuation                            $ 30,000
Total 25% additional special benefits of Catastrophe cover $150,000

As well as the 25% additional special benefits for Catastrophe cover, CHU’s standard policy (Policy 1)
also offers a number of special benefits which provide an additional 15% of the total Sum Insured.

Affordable Cover
Catastrophe cover is more affordable than you may think. To get a quote based on your circumstances,
or for further clarification on any aspect of cover, please call your CHU office.

●  Catastrophe cover is not a top-up for under-insurance of your primary asset (building) and is only
   applicable in the event of a declared catastrophe by the Insurance Council of Australia.

●    The building sum insured should be reviewed each renewal period and updated accordingly.

●    This is general advice only. For full terms and conditions, you should refer to the CHU Product
     Disclosure Statement and Insurance Policy Wording.

●    Statistics reported as obtained via the Insurance Council of Australia as at April 2009.

New South Wales          Victoria               Queensland                 Western Australia     South Australia
Level 5                  Level 30               Level 6                    1050 Hay Street       12 Tucker Street
1 Northcliff Street      459 Collins Street     445 Upper Edward Street    West Perth 6005       Adelaide 5000
Milsons Point 2061       Melbourne 3000         Spring Hill 4004           Tel: 08 9322 1722     Tel: 08 8232 2922

Tel: 1300 361 263        Tel: 03 8695 4000      Tel: 07 3832 4880          Fax: 08 9481 6017     Fax: 08 8232 2924
Fax: 1300 361 269        Fax: 03 9620 0606      Fax: 07 3832 0367

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